They Had An 798 Credit Score But Still Got Rejected For A Personal Loan. Here's The Unusual Mistake They Kept Making Over And Over

Core Insights - A Reddit user with a high FICO score of 798 was denied a personal loan by Citi due to low balances on revolving accounts, despite a strong credit history and timely payments [1][2] - The denial was attributed to the user's practice of paying off credit card balances before the statement closing date, resulting in a reported zero balance and perceived inactivity by lenders [2][3] Group 1: Credit Utilization and Reporting - Credit card issuers report balances to credit bureaus on the statement closing date, not the due date, which can lead to misunderstandings about credit usage [2] - Maintaining a small balance on credit cards can demonstrate responsible usage to lenders, as opposed to paying off the balance entirely before the statement [3] Group 2: Lender Perceptions - Lenders may view applicants with no visible debt as suspicious, which can impact loan approval decisions [4] - The general consensus among commenters suggests that allowing a small balance to report each month can improve the chances of loan approval while avoiding interest charges [3]